Suppose an individual has a utility function U = C+3L, where C is the consumption level and L is the leisure hours. Suppose the individual has 100 hours in total for work and leisure and $10 non-labor income. The wage rate is $3.14. Which feasible consumption level maximizes the individual’s utility? (a) 0 (b) 1.8 (c) 9.42 (d) 10 (e) 31.4 (f) 96.86 (g) 100 (h) 131.4 (i) 314 (j) 324 (k) 414

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Suppose an individual has a utility function U = C+3L, where C is the consumption level and L is the leisure hours. Suppose the individual has 100 hours in total for work and leisure and $10 non-labor income. The wage rate is $3.14. Which feasible consumption level maximizes the individual’s utility?

 

(a) 0 (b) 1.8

(c) 9.42

(d) 10 (e) 31.4 (f) 96.86 (g) 100

(h) 131.4 (i) 314 (j) 324

(k) 414

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